I see red.
Checking crypto prices yesterday – nothing but gore:
If you’ve been paying attention, then you’ll have read our warnings before – cryptos are volatile.
Look at the price murder above once again – this is what we’re talking about.
I sent our crypto expert Sam Volkering a message for his thoughts on the plummet.
His response was pretty straightforward:
“Buy the dip.”
Sam is not being flippant, he just has perspective.
Let’s see if we can get some of that too, by looking at the following chart:
Since the run-up in 2017, crypto “hodlers” have experienced some enormous, stomach wrenching drops.
Look at those three green circles. If the traditional financial markets saw carnage like this – 15% or 20% drops – it would be front page news.
But for this market, still in its infancy, we are used to it.
Now, look at last night’s drop – the red circle. Far from the worst we have seen. Just a blip.
Bear in mind too – the price of bitcoin in January skulked at a lowly $3,400.
This is crypto. Outrageous moves, outrageous overreactions.
That’s why I turn to Sam for the all-important long view.
He’s been making strategic crypto investments since 2011. He has seen it all. Price mania. Panic. Scams. The lot.
He has seen his entire stake wiped out many times.
So why does he persist? Why has Sam taken time out of his life to write a top selling book about crypto? Why does he travel all over the world to keep up to speed on every development and every new project?
Well, a few years ago he banked a 22,000% gain on Ripple. That sort of gain can crystallise your understanding of the market, instantly.
And he’s sitting on what could be another substantial profit, depending on where Ethereum ends up. It’s $170 today. Sam bought it for just under $10. It’s been as high as $1,200! He believes it has the best shot of any “alt coin” of surpassing bitcoin as the market king pin in the years to come.
What’s the lesson here?
If you want to enjoy this market, ditch your short-term expectations.
Checking prices daily will absolutely ruin your life. A lot of people treat their portfolios as an extension of their nervous systems, sensitive to every price tremor.
You cannot do that with crypto. You cannot allow your mood or outlook on life be dictated by a wild market like this. Not unless you want to go bonkers.
Sam’s philosophy is – dream big, but think long.
And here’s why – a reminder of the serious investment flooding into the market right now:
$1trn giant APPLE just has launched a special “crypto kit” for app developers.
FACEBOOK has hit the headlines, announcing plans to launch its own currency – LIBRA – in 2020. A development The Guardian is calling “a risk to global banking”.
SAMSUNG has released a fully integrated crypto wallet into its latest Galaxy S10 – one of the most popular devices in the world.
The world’s 6th largest bank – JP MORGAN – is already settling financial contracts using crypto technology… and is widely rumoured to be developing a digital US dollar.
The 4th biggest investment fund on the planet – FIDELITY, with $6.7tn in private capital under its care – has launched a “crypto custody” service so its millions of clients can invest securely in cryptos.
And a wave of huge chain stores and services like STARBUCKS, AT&T, WHOLE FOODS and MICROSOFT now accept payment in various cryptocurrencies.
In March, computing giant IBM inked a deal to work with six banks to issue cryptocurrencies to retail customers.
News broke yesterday that 25k stores in France will start accepting bitcoin in 2020.
As Forbes said recently: this new wave of “pension funds investing in crypto is a big deal.”
That’s some important perspective, I think.
Short term – madness.
Long term – the chance to accrue enormous wealth from a disruption to the financial system.
Crypto is a divisive investment. It is not for everyone. It can be scary.
But some of us like to be scared and we like the excitement of knowing a small stake we can afford to lose could end up worth tens of thousands of pounds. Or worth nothing at all.
It may be a little perverse, but so what? In my experience, it’s thrilling. I have seen my Ethereum investment quadruple, halve, double.
Maybe this is why I find it so enthralling:
“There’s almost nothing else that can match [fear] in terms of the incredible sensory experience that the body is put through.”
That’s how the American Psychological Association talk about why risky and frightening activities have such a magnetic pull on some of us…
But they could easily be talking about investing in cryptocurrencies. Maybe that chimes with you, too.
If you can accept the risks, think long, and see the bigger picture… then Sam’s broadcast today will be enlightening for you.
It’s a free crypto investing masterclass. He’s going to share his decade-long experiences with those who tune in. I hope you can join him.
Today at 2pm he will show you:
- Three catalysts that could send the market over $1tn over the next few years
- Details on two early-stage cryptos to buy now – with enormous long-term potential
- Something very clever: a way to start accruing crypto income on “autopilot”.
If you see the long-term potential here, taking Sam’s lead and “buying the dip” could work out nicely.
If you haven’t heard, those who tune in will be in with a chance to claim as much as £5k worth of bitcoin for free. Given the murderous price action of the last 24 hours, that £5k gets you a lot more than it did a few weeks ago!
Associate Publisher, Exponential Investor